Agenda Packet 3-13-19 Work Session

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Housing Tools and Strategies Action Inventory 16 Recommended Actions B. Reduce Cost and Time Burden Action Explanation Level of Support Impact Does this action increase housing affordability, availability, and/or diversity the charge, the City would be asking for a fee in order to allow occupancy. ($1.75). Builders rarely use the City’s financing plan, as it can add complexity to other loans taken out to finance construction. Cost- 11 Provide funding assistance to connect infrastructure to residential land identified in Eugene’s Buildable Lands Inventory. Eugene’s Buildable Land Inventory was an analysis of land identified as ‘developable’ in Eugene. Some of these parcels are not served by urban infrastructure (such as roads, water, and sewer). Builders have reported that the cost of extending infrastructure to these sites is so costly that it makes it not financially feasible to construct housing. Publicly constructed infrastructure to serve undeveloped land is traditionally funded by a combination of SDCs and assessments on the land owners. The City used to extend services to land before development was proposed using SDCs and assessments. A policy change was made to stop installing new infrastructure and focus on maintaining existing infrastructure. To install these utilities now, builders must go through the PEPI process and pay for the installation to serve sites. Major planned infrastructure built by developers would qualify for SDC credits. HTS working group supported this option (70%) in the preliminary vote. Yes – The cost of constructing of new infrastructure adds cost to development and can make increase the cost so that it makes it financially infeasible to develop housing in areas that need that infrastructure. Public funds would need to be used to provide additional financial assistance and incentive. Cost- 12 Reduce SDCs for multi- family developments in the downtown and along key corridors. The City recently updated the Transportation SDC, and the new fee structure offers the following cumulative incentives for new developments: a 30% reduction within the downtown plan boundary, a 15% reduction along Envision Eugene key corridors, and a 5-10% reduction along the frequent transit network. HTS working group supported this option (68%). No one in the WG opposed it. Yes - SDCs account for a large portion of City- imposed financial costs. By reducing the SDCs for large developments, builders will see a reduction in overall project cost. A reduction in SDCs developers can make multifamily more feasible financially. It could also serve to incentivize building multifamily developments along March 13, 2019, Work Session - Item 2